Question

Balance Sheet from Adjusted Trial Balance

The following is the alphabetical adjusted trial balance of the Meadows Company on December 31, 2016:

	Debits		Credits
Accounts Payable			$ 9,800
Accounts Receivable	$ 19,000
Accrued Payables			7,100
Accumulated Depreciation			44,000
Additional Paid-in Capital			50,600
Cash	7,900
Common Stock, $5 par			29,600
Cost of Goods Sold	179,500
Current Portion of Long-Term Debt			6,200
Deferred Taxes Payable			12,500
Dividends Distributed	7,000
General Expenses	27,560
Income Tax Expense	12,340
Income Taxes Payable			7,500
Interest Expense	4,300
Inventories	32,000
Investment in Held-to-Maturity Bonds	36,000
Long-Term Debt			56,600
Long-Term Receivables	38,600
Marketable Securities (short-term)	10,200
Patents (net)	13,000
Prepaid Insurance	5,000
Property, Plant, and Equipment	148,000
Retained Earnings, 1/1/16			69,000
Sales			270,000
Selling Expenses	21,500
Unrealized Decrease in Value of Available-for-Sale Securities	1,000
	$562,900		$562,900

Required:

1. Prepare Meadows's December 31, 2016, balance sheet.

Meadows Company
Balance Sheet
December 31, 2016
Assets
Current Assets:
Cash		$
Marketable securities (short-term)
Accounts receivable
Inventories
Prepaid insurance
Total current assets			$
Long-Term Investments:
Investment in held-to-maturity bonds		$
Long-term receivables
Property, Plant, and Equipment:
Property, plant, and equipment		$
Less: Accumulated depreciation
Intangible Assets:
Patents (net)
Total Assets			$
Liabilities
Current Liabilities:
Accounts payable		$
Accrued payables
Income taxes payable
Current portion of long-term debt
Total current liabilities			$
Long-Term Liabilities:
Long-term debt
Other Liabilities:
Deferred taxes payable
Total Liabilities
Shareholders' Equity
Contributed Capital:
Common stock, $5 par		$
Additional paid-in capital
Total contributed capital			$
Retained earnings
Accumulated Other Comprehensive Loss:
Unrealized decrease in value of available-for-sale securities
Total shareholders' equity			$
Total liabilities and shareholders' equity			$

Feedback

2. Compute the debt-to-assets ratio.

Round your answer to two decimal places.

%

What does it indicate about Meadows at the end of 2016?

This ratio reveals that only ??????? % of Meadows’s assets  have been financed with debt.

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.